Tax amendments-October 23,2019

As per the Committee level amendments approved on 23rd October 2019,given below the key points for your consideration until incorprated to the Acts.

VAT

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1. For each garment other than panties, socks, briefs and boxer shorts identified under the Harmonized Commodity Description and Coding System Numbers for custom purposes -w.e.f 01.11. 2019 - increase from Rs. 75 to Rs. 100

- For six pieces of panties, socks,briefs and boxer shorts, identified under the Harmonized Commodity Description and Coding System Numbers for custom purposes -w.e.f 01.11. 2019-increase from Rs. 75 to Rs. 100

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2. Fifteen (15 ) day payments for other than manufacturers and financial services has been removed w.e.f 01.10.2019

3.Exports includes goods send to foreign projects by construction contractors

4.Input tax paid by lower rate suppliers - limited to 5% (Hotel sector)

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Supply of Condominium housing units is exempted if the value of a single unit doesn't exceed Rs.25Mn. w.e.f 01.04.2019

5.Exemption from 01.11.2019 - locally produced rice bran oil made out of locally produced rice.

NBT

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1.Exemption on or after November 1, 2019, of a construction contractor or a sub-contractor

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2.Services provided by a hotel, guest house, restaurant or other similar business on or after November 1, 2019 will be exempted , where the payment for such service is received in foreign currency through a bank in Sri Lanka, where such hotel, guest house, restaurant or other similar business is registered with the Ceylon Tourist Board;

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3.Provisions of IRA 24 of 2017 will apply for assessments appeals etc.

Finance Act

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1. Luxury tax

Registration on or after 01.11.2019

Any assembled or unassembled motor vehicle, but does not include a van, a single cab, a double cab, motor cycle, a motor tricycle, a motor ambulance, a motor hearse, a lorry, a tractor, a hand tractor, a trailer or any motor vehicle for transport of goods , as identified under the harmonized commodity description and coding system numbers provided in terms of the Customs Ordinance (Chapter 235)

Before 01.11.2019

any assembled or unassembled diesel motor vehicle of which the cylinder capacity exceeds 2,300 CC or a petrol motor vehicle of which the cylinder capacity exceeds 1,800 CC or an electric vehicle of which motor power of the engine exceeds 200 Kw, but shall not include a dual purpose petrol motor vehicle the cylinder capacity of which does not exceed 2,200 CC, a dual purpose electric motor vehicle, a van, a single cab or a wagon

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